- if you incur no health care
expenses all year (remember: preventive care is fully covered in
network), you’d save $277 in premiums by choosing a high-deductible plan
over a PPO.

- a medical crisis or unexpected illness could leave
you paying $444 more if you run up against your out-of-pocket max.

- also consider employer contribution to HSA and teh tax deductible saving you can have if you contribute to HSA

In 2015, 55% of employers contributed to workers’ HSAs, $809 on
average. For a single tax filer in the 25% bracket, that’s a freebie
that’s equivalent to $1,079 of post-tax money. In this situation, you
are typically better off with a high-deductible plan. Best-case
scenario, you save $277 on premiums; worst-case scenario, you save $365
in total out-of-pocket costs.

Average Plan Costs With HSA (Individual Policy)

Type of health plan

Average yearly premiums

Avg. out-of-pocket max (in-network)

Average employer HSA contribution

Average max outlay

PPO

$1,145

+ $3,291

– $0

= $4,436

High-deductible health plan

$868

+ $4,012

– $809

= $4,071

Insurance

HMO

You have to have a primary care physician a.k.a PCP and use referrals

PPO

Low deductible health plan a.k.a LDHP

PPO HSA

High deductible health plan a.k.a HDHP

FSA is limited to dental and vision costs. can be very useful for braces, dental work

The Bottom Line

Choosing a plan that your doctor accepts is a must.
From there, if you’re relatively healthy and you have enough savings to
cover a health care emergency, a high-deductible plan often makes sense,
especially if your employer adds cash to your HSA. But if you tend to
have high health care costs, you’re short on savings, or your employer
isn’t adding to your HSA as an incentive, take a careful look at your
potential outlay—it may be worth paying more upfront for better coverage
later.